Denis O'Brien's €200 million takeover of UK media group Emap's three Irish radio stations was approved yesterday by the Competition Authority subject to him selling Dublin station FM104. Ciarán Hancock, Business Affairs Correspondent.
In its determination, the authority said the takeover would not "substantially lessen competition" in the commercial radio sector here.
This clears the way for Mr O'Brien to take control of national station Today FM and Highland Radio in Donegal.
Mr O'Brien is being forced to sell FM104 due to concerns over his control of the radio advertising market in Dublin. He already owns local stations 98FM and Spin 103 in the capital.
It is understood that Mr O'Brien's Communicorp radio group has asked three parties - UTV, Vienna Investments and Liberty Global - for final bids for FM104 early next week.
The three suitors received management presentations in the past few days. FM104 is expected to sell for close to €50 million.
UTV already owns five commercial radio licences in the Republic. Vienna Investments is led by former FM104 chief executive Dermot Hanrahan while Liberty Global owns the NTL and Chorus cable TV operations here.
It is believed that Communicorp hopes to agree a deal to sell FM104 by next Friday. It would then seek approval for that transaction from the Broadcasting Commission of Ireland (BCI) at its board meeting on December 17th.
The sale of FM104 will also have to be cleared by the Competition Authority and sources said it could be January or February before it changes hands.
The authority announced its decision on its website yesterday, a move that caught many involved in the long-running sale process by surprise.
On November 9th, the regulator began a full phase-two investigation of Mr O'Brien's takeover and the authority was not expected to give a verdict until FM104 was sold.
Mr O'Brien notified the authority of his plan to buy Emap's stations on July 30th. He received clearance from the BCI for his takeover on October 8th, subject to offloading FM104.
With approval from the authority secured, Mr O'Brien's takeover of the Emap stations has been referred for approval to Minister for Enterprise, Trade and Employment Michael Martin.
The Minister has 30 days to raise any objections to the deal but is not expected to do so.He will also be required to approve the takeover of FM104.
Mr O'Brien will now own two national stations - Newstalk and Today FM - a regional licence in the southwest, two stations in Dublin and Highland Radio in Donegal. He is also a shareholder in East Coast Radio in Wicklow.
FM104 is expected to achieve earnings before interest, tax, depreciation and amortisation of €4.6 million in fiscal year 2008.
